Skip to Content.
Sympa Menu

homestead - Re: [Homestead] Perfect Storm

homestead AT lists.ibiblio.org

Subject: Homestead mailing list

List archive

Chronological Thread  
  • From: "lkvp" <lkvp AT floydva.net>
  • To: <homestead AT lists.ibiblio.org>
  • Subject: Re: [Homestead] Perfect Storm
  • Date: Wed, 11 May 2005 09:17:55 -0400

---------- Original Message ----------------------------------
From: Don Bowen Date: Tue, 10 May 2005 20:56:21 -0700

>Is it to take the increased equity out?
>
There will always be people late to the refi table, they decide to finally do
it when rates are on the way up.

Many people, like myself, are now refinancing to pay off home equity lines of
credit (heloc). Here's but one example: Two years ago I put down 20% on the
house in town used for our businesses from a heloc on our primary home.
Equity lines are going up with the prime rate, so it now makes sense to pay
off helocs. We could keep an 80% loan (no mtg. ins.) on the office since the
value has increased and pull out enough equity to pay off the heloc. I now
owe more on the office (an investment/rental property) and less on my
home/farm and traded a fixed rate loan at 5.875% for a heloc that began at
4.25% and was at 6.75% and climbing. The ultimate goal, I still believe, is
to be debt-free, but until that day arrives this is a step in the right
direction.

Lisa





Archive powered by MHonArc 2.6.24.

Top of Page